Search form

Search form

Traditional TV advertising revenues for local stations are expected to increase 12.5% to $21.5 billion in the next four years, BIA/Kelsey reports. Also, digital TV advertising is expected to rise from this year's $700 million to $1.1 billion by 2017. "We expect the pace to normalize this year, but continue its upward trend to prerecession numbers, in part due to online revenues," said BIA/Kelsey's Mark Fratrik.

Related Summaries

Local ad revenues are expected to total $146.6 billion next year, which would represent a 3.75% increase over the $141.3 billion total in 2015, BIA/Kelsey predicts. Online/digital ad revenue is expected to be a big driver of growth. "We also adjusted our 2015 estimate for total local media spending up slightly due to stronger mobile and social advertising," BIA/Kelsey's Mark Fratrik said.

Local TV stations, with help from political ads in states with highly competitive races, are on track to boost their revenues by 8% to $20.7 billion this year, BIA/Kelsey is projecting. "Additionally, we're seeing the ability of local stations to maintain their loyal advertiser base, which means they consistently receive recurring ad revenue that boosts their profitability," said Mark Fratrik, BIA/Kelsey's senior vice president and chief economist.

Local media ad revenue is projected to go from $132.9 billion in 2013 to $151 billion in 2017, under a revised forecast from BIA/Kelsey that predicts a compound annual growth rate of 2.8%, up from a March expectation of 2.3%. "The economy is chugging along, and local media is still an important part for national and local advertisers," said Mark Fratrik, chief economist at BIA/Kelsey.

Retailers will spend $4.2 billion on local digital advertising in 2013, accounting for 11.2% of total local ad spending, according to a BIA/Kelsey report. The automotive, general services, restaurant and financial sectors will each account for more than $2 billion in local online campaigns, the report notes. "The migration to digital media is growing in local markets across the country," says BIA/Kelsey economist Mark Fratrik.

Radio sales this year are projected to grow 1.5% to $13.9 billion and post an annual growth rate of 2% to 4% over the next several years, according to BIA/Kelsey's "Investing in Radio Market Report." "While the poor economy held it down momentarily, radio is coming back to demonstrate that it is an important advertising vehicle, particularly in local media markets," said Mark Fratrik, vice president of BIA/Kelsey.